How do I choose my marketplace payment solution?
When you want to launch your marketplace, in most cases the transactions are managed by a Payment Service Provider (PSP). But how do you choose your PSP? Here are some tips to help you make the right choice.
Payment methods offered by PSPs
According to the Fédération du E-Commerce et de la vente à distance (FEVAD), 85% of online sales in France are currently made by credit card. It is therefore essential to choose a marketplace payment solution that offers this method of payment.
However, it’s also important to bear in mind that other payment methods are developing. You should also be aware that they differ depending on the PSP you choose. Some players offer methods such as bank transfer, instant payment or payment in instalments. It is therefore important to know what customers expect from the market in order to determine which methods should be implemented. What’s more, by multiplying the solutions on offer, the chances of your customers making a purchase are multiplied.
It is therefore essential to pay attention to the different payment methods offered and managed by the payment service provider. However, it is also important to consider the marketplace’s needs in relation to the market.
Business security and compliance
In a context of growing online insecurity, many shopping baskets that are not validated are abandoned (17% of sales are not converted). For this reason, security is an important element to take into consideration, especially if the site has a low profile.
It’s important to ensure that the solution used enables the marketplace to comply with regulations. This applies in particular to the management of financial flows and payment services. If the company is not itself a payment institution (accreditation obtained from the ACPR), it is a good idea to use a payment services provider that is itself accredited by the ACPR. This guarantees compliance with financial regulations.
This international dimension of the marketplace
When developing an international business, it is essential to check that the PSPs cover the countries in which the business is being developed. Because international banking systems are heterogeneous, they can be quite complex. What’s more, these differences are responsible for the failure or abandonment of 60% of international transactions. It is therefore important to ensure that the payment service provider is capable of managing transactions in the target countries. What’s more, you need to carefully study the countries supported by your payment solution before taking the plunge!
Choosing or not choosing a distance selling contract
The VAD or VADS contract is a secure distance selling contract between the bank and the merchant. It makes it possible to offer an online payment terminal. Above all, it enables credit card payments to be collected securely.
The VAD contract also defines the amount of the electronic payment commission deducted from each transaction.
Fees charged by payment service providers
Payment service providers charge commission on transactions. Some charge a percentage of the transaction plus a fixed fee. The percentage and fixed charges vary according to the payment method. They also depend on the country in which the transaction takes place, the volumes processed and the PSP. However, some providers also have subscription fees.
It is therefore important to take into account the estimated turnover. This estimate can be used to determine the most cost-effective solution for your business.
